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Ebay Versus Yahoo And Microsoft IT Essay

Read the fastened case study and answer the following questions. An excellent answer will in every cases demonstrate a knowledge of the basic theory which underpins the research of organisations and their Information Systems. It will demonstrate a knowledge of the different system and become able

to relate this in a useful way to provide information which management decisions can be based mostly. It'll use the

case study example to illustrate the response but will also show intensive evidence of additional research and reading.

An satisfactory answer will illustrate the application of the underpinning theory and a more limited ability to apply this

to Information Systems problems. It will relate this to the research study example and show evidence of additional research

and reading.

A faltering answer will neglect to apply any theory to the issues mentioned and, for example, consist purely of comprehension

of the case study material.

Q1. Will you agree with Yahoo and Microsoft that eBay is now vulnerable to their assaults via Google Base and

Windows Live Expo? Why or you will want to?


Q2 What exactly are the major advantages and constraints of Google Foundation and Glass windows Live Expo? Which do you prefer or

would you use both? Why? Head to their Internet websites and read reviews at other sites to help you answer.


Q3. Are eBay's development of Kijiji, acquisition of Skype, alliance with Yahoo, and other acquisitions as observed in this

case enough to defend against the competitive assaults of Yahoo and Microsoft? Defend your position.



3:00 PM on Thursday night 9 Dec 2010

eBay versus Yahoo and Microsoft:

The Competitive Fight for e-

Commerce Supremacy

or almost all of its presence, eBay has liked a virtual

monopoly. It now orders more than 90 percent of

the online auction market, and from 1999 to 2004, it

posted at least 40 percent total annual profit growth every year,

even as brawny competitors like Amazon and Yahoo were

taking goes at its main business. Yet for many its phenomenal

success, in 2006 eBay started out to face the toughest challenges

of its 10-yr background. The armies massing on its edges hail

from Google and Microsoft, but rather than shoot for eBay's

auction business, both behemoths want to make use of their

strength browsing and advertising to build dominance in

online classifieds-the format that many experts think will

define the future of e-commerce.

"Ebay auctions remain too hard for many consumers

to navigate, " says Safa Rashtchy, mature analyst covering

e-commerce and search at Piper Jaffray. "Overall, people

prefer to buy locally, but there hasn't been an efficient way

for them to find one another. "

Fans of the populist Web site Craigslist, in which eBay

owns a twenty five percent stake, might disagree. With dedicated

sites in many metropolitan areas across the world, Craigslist is an online

classifieds reaching place for thousands and thousands of people looking to

share ideas, meet a friend, find employment, or locate an apartment.

Meg Whitman, CEO of eBay notes, "Craigslist is an

excellent example of how the Internet brings people together

to trade goods, help neighbours, or speak out on

important issues. Craigslist has become the online

gathering place for local areas. " But Craigslist

doesn't have an online repayment system-it doesn't use

eBay's PayPal-or an industrial-strength shopping search

engine that may help it increase into a major global player.

Not to say that founder Craig Newmark and CEO Jim

Buckmaster seem in no be quick to expand prematurely on that

global size.

Two of the very most formidable companies on the planet,

however, are in more of your rush. Google and Microsoft certainly

have the resources; some say the invasion into eBay's

turf started when Louis Monier, ex - director of advanced

technology at eBay and the wizard behind its search improvements,

was poached by Google last summer time. The challengers

also have a motive: The burgeoning online classifieds business

is growing at a way faster clip than auctions.

Microsoft launched its entries service, Glass windows Live

Expo, in February 2006 as yet another of its Glass windows Live

initiatives. Users have the ability to post classifieds free of charge, limit access

by friend lists, and focus listings geographically; a tie-in

to MSN's Virtual Earth mapping service helps clients and

sellers find one another easily. Says Gary Wiseman, product

unit administrator, "What sets Windows Live Expo apart is that

people can placed their own search variables for goods and

services. They can identify their own industry universe. "

Most categorised advertising services generalize product

location by way of a predefined city location, no matter where in

the city the product is located. However, all products and

services posted in Home windows Live Expo are geographically

identified, or geo-tagged, by zip code, not city, which specifically

defines where in fact the product is situated. Windows Live

Expo customers likewise have the option to search for items

within a radius as small as 25 a long way or as large as the entire

United States, so that it is easier to explain a search. Windows

Live Expo entries are also integrated with MSN's satelliteimage-

based Home windows Live Local so customers can view

maps and aerial imagery of neighbourhoods they may want

to live in or see exactly where this weekend's garage sale is.

Google's foray, called Yahoo Base, went stay in mid-

November 2005, a robust foundation which Google

could build a variety of products that contend with eBay.

A large, searchable database, the free service allows users

to post from formulas and concert dates to used

cars and job entries, and local stores can upload inventory

listings. Users have the ability to post classifieds data so buyers

can see what's on the racks in the bricks-and-mortar stores

in their neighbourhoods. With eBay acquiring nearly half of

its new clients and sellers in the United States through paid

listings, generally on Yahoo and google, it might lose customers if

Google puts its search results first.

Google Platform users can submit all types of online and

offline content, which becomes searchable on Yahoo. Users

can describe any item with attributes, which can only help people

find it when they certainly related searches. Based on an item's relevance,

users may find their results for queries on Froogle,

Google Maps, or the key Google search engine. The more

popular individual attributes become, the more often Google

suggests them when others post the same items.

"People could bypass eBay totally, " statements Scot

Wingo, CEO of Channel Consultant, which helps big eBay sellers

like Best Buy maximize online sales. One of Wingo's clients,

online shoe store Grapevinehill, recently started out listing its

inventory on Google Base in addition to eBay. Owner Mark

Fitzgerald says he made the proceed to reach Google's broader

audience and that the new entries are already driving traffic to

his store: "We definitely see some momentum building. "

eBay isn't blind to this switch in e-commerce. Its recent

acquisitions and launches-comparison site Shopping. com

and international online classifieds sites Kijiji, Gumtree, and

LoQUo-lend themselves to the web entries business.

Kijiji, which means "community" in Swahili, and others provide

international online classifieds Sites that provide a

place for individuals in many towns in Asia, European countries, the United

Kingdom, Australia, Canada, New Zealand, and South Africa

to meet via personals, share ideas, buy or trade goods and services,

find accommodations, or show information on property,

real estate, jobs, and other topics.

Then in Sept 2005, eBay received Luxembourgbased

Skype Technology SA, the global Internet communications

company, for about $2. 6 billion in upfront

cash and eBay stock. eBay claimed that that Skype, eBay, and

PayPal create an unequalled e-commerce and communications

engine for potential buyers and sellers throughout the world.

eBay defended the huge high quality it payed for Skype (the

Economist observed that Skype possessed yet to produce a dime's value of

profit) by emphasizing that online shopping will depend on a

number of factors to function well and this communications,

like repayments and shipping, is a crucial part of the process.

Skype will streamline and improve communications between

buyers and retailers as it is built-into the eBay marketplace,

argues eBay. Customers will gain a simple way to talk to

sellers quickly and get the info they have to buy, and

sellers can easier build romantic relationships with customers


and close sales. As a result, eBay hope that Skype (which

then experienced 54 million associates in 225 countries, was adding

about 150, 000 users every day, and was the market leader in

nearly all countries it can business) will increase the velocity

of trade on eBay, especially in categories that require

more involved communications such as used autos, business

and industrial equipment, and high-end collectibles.

eBay CEO Meg Whitman struck again in mid-

2006 with an alliance of types with Yahoo, that may sell ads

for eBay's sites and promote eBay's PayPal repayment service

as a means for consumers to pay for Yahoo services. That undoubtedly

led to a delight deal with Google later that calendar year,

in which Yahoo decided to promote Skype calls on its Web

site, while eBay will allow Google to put advertisings on eBay's Web

sites in market segments outside the United States.

Actually, say some analysts, eBay's best defense

could grow to be its PayPal fraud and payment staff-

more than 1, 000 employees-which Yahoo and Microsoft

have yet to complement. "It's an enormous advantages, " says analyst David

Edwards of American Technology Research. "People overlook

how complicated eBay's business is. "

These case

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